The Biden administration is moving closer to developing a central bank digital currency, known as the digital dollar. This will help cement the role of the United States as the leader of the global financial system.
The White House said Friday that President Joe Biden issued an executive order in March asking various agencies to look into ways to regulate digital assets, the agencies wrote nine reports. These reports cover the effects of cryptocurrencies on financial markets, the environment, innovation and other elements of the economic system.
Treasury Secretary Janet Yellen said that one of the Treasury’s recommendations was that the United States “advance policy and technical work on a potential central bank digital currency, or CBDC. And this, so that the United States would be ready if a CBDC.” considered to be in the national interest”.
“Right now, some aspects of our current payment system are too slow or too expensive,” Yellen said. It was outlining the findings of some reports with reporters during a call on Thursday.
Central bank digital currencies differ from existing digital currency available to the general public, such as bank account balances. Because they would be directly the responsibility of the Federal Reserve, not any commercial bank.
According to the nonpartisan Atlantic Council think tank, 105 countries representing more than 95% of the world’s GDP are already exploring. Or created the digital currency of the Central Bank.
The Council found that the United States and the United Kingdom are far behind. And this, in the creation of a digital dollar or its equivalent.